Armenia prides itself on being the first nation to formally adopt Christianity (early 4th century). Despite periods of autonomy, over the centuries Armenia came under the sway of various empires including the Roman, Byzantine, Arab, Persian, and Ottoman. During World War I in the western portion of Armenia, Ottoman Turkey instituted a policy of forced resettlement coupled with other harsh practices that resulted in an estimated 1 million Armenian deaths. The eastern area of Armenia was ceded by the Ottomans to Russia in 1828; this portion declared its independence in 1918, but was conquered by the Soviet Red Army in 1920. Armenian leaders remain preoccupied by the long conflict with Muslim Azerbaijan over Nagorno-Karabakh, a primarily Armenian-populated region, assigned to Soviet Azerbaijan in the 1920s by Moscow. Armenia and Azerbaijan began fighting over the area in 1988; the struggle escalated after both countries attained independence from the Soviet Union in 1991. By May 1994, when a cease-fire took hold, Armenian forces held not only Nagorno-Karabakh but also a significant portion of Azerbaijan proper. The economies of both sides have been hurt by their inability to make substantial progress toward a peaceful resolution. Turkey imposed an economic blockade on Armenia and closed the common border because of the Armenian occupation of Nagorno-Karabakh and surrounding areas.

soil pollution from toxic chemicals such as DDT; the energy crisis of the 1990s led to deforestation when citizens scavenged for firewood; pollution of Hrazdan (Razdan) and Aras Rivers; the draining of Sevana Lich (Lake Sevan), a result of its use as a source for hydropower, threatens drinking water supplies; restart of Metsamor nuclear power plant in spite of its location in a seismically active zone

adopted by nationwide referendum 5 July 1995; amendments adopted through a nationwide referendum 27 November 2005

Legal system:

based on civil law system

Suffrage:

18 years of age; universal

Executive branch:

chief of state: President Robert KOCHARIAN (since 30 March 1998)
head of government: Prime Minister Andranik MARGARYAN (since 12 May 2000)
cabinet: Council of Ministers appointed by the prime minister
elections: president elected by popular vote for a five-year term (eligible for a second term); election last held 19 February and 5 March 2003 (next to be held in 2008); prime minister appointed by the president and confirmed with the majority support of the National Assembly; the prime minister and Council of Ministers must resign if the National Assembly refuses to accept their program
election results: Robert KOCHARIAN reelected president; percent of vote - Robert KOCHARIAN 67.5%, Stepan DEMIRCHYAN 32.5%

Legislative branch:

unicameral National Assembly (Parliament) or Azgayin Zhoghov (131 seats; members elected by popular vote to serve four-year terms; 90 members elected by party list, 41 by direct vote)
elections: last held 25 May 2003 (next to be held in the spring of 2007)
election results: percent of vote by party - Republican Party 23.5%, Justice Bloc 13.6%, Rule of Law 12.3%, ARF (Dashnak) 11.4%, National Unity Party 8.8%, United Labor Party 5.7%; seats by faction - Republican Party 39, Rule of Law 20, Justice Bloc 14, ARF (Dashnak) 11, National Unity 7, United Labor 6, People's Deputy Group 16, independent (not in faction or group) 18; note - as of 10 March 2006; voting blocs in the legislature are more properly termed factions and can be composed of members of several parties; seats by faction change frequently as deputies switch parties or announce themselves independent

Under the old Soviet central planning system, Armenia had developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics in exchange for raw materials and energy. Since the implosion of the USSR in December 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexes of the Soviet era. The agricultural sector has long-term needs for more investment and updated technology. The privatization of industry has been at a slower pace, but has been given renewed emphasis by the current administration. Armenia is a food importer, and its mineral deposits (copper, gold, bauxite) are small. The ongoing conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh and the breakup of the centrally directed economic system of the former Soviet Union contributed to a severe economic decline in the early 1990s. By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic liberalization program that resulted in positive growth rates in 1995-2005. Armenia joined the WTO in January 2003. Armenia also has managed to slash inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Armenia's unemployment rate, however, remains high, despite strong economic growth. The chronic energy shortages Armenia suffered in the early and mid-1990s have been offset by the energy supplied by one of its nuclear power plants at Metsamor. Armenia is now a net energy exporter, although it does not have sufficient generating capacity to replace Metsamor, which is under international pressure to close. The electricity distribution system was privatized in 2002. Armenia's severe trade imbalance has been offset somewhat by international aid, remittances from Armenians working abroad, and foreign direct investment. Economic ties with Russia remain close, especially in the energy sector. The government made some improvements in tax and customs administration in 2005, but anti-corruption measures will be more difficult to implement. Investment in the construction and industrial sectors is expected to continue in 2006 and will help to ensure annual average real GDP growth of about 13.9%.

general assessment: system inadequate; now 90% privately owned and undergoing modernization and expansion
domestic: the majority of subscribers and the most modern equipment are in Yerevan (this includes paging and mobile cellular service)
international: country code - 374; Yerevan is connected to the Trans-Asia-Europe fiber-optic cable through Iran; additional international service is available by microwave radio relay and landline connections to the other countries of the Commonwealth of Independent States and through the Moscow international switch and by satellite to the rest of the world; satellite earth stations - 3 (2005)

18 to 27 years of age for compulsory military service, conscript service obligation - 12 months; 18 years of age for voluntary military service (2004)

Manpower available for military service:

males age 18-49: 722,836
females age 18-49: 795,084 (2005 est.)

Manpower fit for military service:

males age 18-49: 551,938
females age 18-49: 656,493 (2005 est.)

Manpower reaching military service age annually:

males age 18-49: 31,774
females age 18-49: 31,182 (2005 est.)

Military expenditures - dollar figure:

$135 million (FY01)

Military expenditures - percent of GDP:

6.5% (FY01)

Transnational Issues

Armenia

Disputes - international:

Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and since the early 1990s, has militarily occupied 16% of Azerbaijan - Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; over 800,000 mostly ethnic Azerbaijanis were driven from the occupied lands and Armenia; about 230,000 ethnic Armenians were driven from their homes in Azerbaijan into Armenia; Azerbaijan seeks transit route through Armenia to connect to Naxcivan exclave; border with Turkey remains closed over Nagorno-Karabakh dispute; ethnic Armenian groups in Javakheti region of Georgia seek greater autonomy; tens of thousands of Armenians emigrate, primarily to Russia, to seek employment

illicit cultivation of small amount of cannabis for domestic consumption; minor transit point for illicit drugs - mostly opium and hashish - moving from Southwest Asia to Russia and to a lesser extent the rest of Europe